People wonder why stuff bought by the government costs so much. Well, they have requirements that are incomprehensible to normal people, and often conflict with each other. Lots of suppliers just won’t put up with having to deal with all the BS involved to bid on a contract. Then if they do bid and get a contract there is no guarantee it will continue long enough to be profitable, or if some other outfit with some sort of preference (like being a small, disadvantaged, woman or minority owned business) will take it away.
The guys supplying the filler material have to do all the same sorts of QA and certifications and tests for a couple of pallets of the stuff, or a trainload, and all that costs money and time.
A vendor having a better idea or cheaper way of doing things will be shoved aside because there are already specifications and standards written and bureaucrats don’t want to work to change them, and besides, it’s not their money which is being spent to buy the stuff.
Good on Jay for being willing to jump through the hoops to provide the stuff that is needed, despite all the obstacles they throw in his way. Play their game, but make 'em pay! (Yeah, I know, I will actually help pay for it.)